Sports Brands Will Invest In Digital Transformation

Recently, sports brands have released the second quarter financial reports. From the financial reports, compared with the first quarter, the overall performance of sports brands in the Chinese market is warmer, and the e-commerce business performance is strong.

For the major sports brands, in the global epidemic situation is still continuing, there is no turning point, brand marketing and management both turn to "digital" is an inevitable move. 361 ° recently invested in multi-stage e-commerce and continued to develop e-commerce business; biyinlefen plans to acquire Shanghai Weixiang, a professional marketing agency of short video, to strengthen brand promotion and online sales; Nike, Adidas, Lulu lemon, Puma and other sports brands have repeatedly stressed the importance of "digital transformation" in financial reports, which means a new round of digital sports brand It's coming.

The overall performance of sports brands recovered in the second quarter

From the results of the second quarter released by various sports brands, the performance has improved to varying degrees compared with the first quarter.

Anta Sports released a few days ago in the second quarter of the preliminary performance data show that Anta brand sales recorded a low range of decline, compared with the first quarter of 20% - 25% decline has narrowed, thanks to the growth of e-commerce more than 40%.

Anta will increase its live broadcasting resources this year

Based on the 361 ° year-on-year decline in retail sales of children's wear in the second quarter of 2020, the number of children's clothing brands with low operating value (361 ° in the second quarter of 2020) is also shown. Compared with the first quarter, the retail sales of main brands decreased by 25% - 30% year-on-year, and 361 ° children's wear brands fell by 25% - 30% year-on-year, showing a significant recovery in performance. (related reports in the past: thanks to the fourth Asian Games, 361 ° is optimistic about the development of sports goods industry for a long time)

When disclosing the mid-term performance and profit warning in 2020 and the business operation status in the mainland of China in the second quarter of 2020, Tebu International (hk1368) said that in the past few months after the outbreak of the epidemic, Tebu group showed a strong trend of going against the trend as a whole. For the business expectation of the enterprise, Tebu showed sufficient confidence, and said that the group has abundant cash reserves and good financial condition.

Online live selling of special shopping guide during epidemic period

Biyinlefen, a golf subdivided clothing brand, recently released its first half performance report. In the second quarter, biyinlefen achieved an accelerated recovery in business performance, with its business revenue increasing by 7.03% year-on-year, and the sales volume of new retail and e-commerce increased significantly.

In the post epidemic era, e-commerce shows great power

The improvement of sports brand performance in the second quarter is inseparable from the contribution of e-commerce, especially in the "618" e-commerce promotion in the middle of the year, these brands have made brilliant achievements. During the "618" period, Anta's total transaction volume reached 1.43 billion yuan, a year-on-year increase of 78%, setting a new record; the total transaction volume of main brands of Tebu exceeded 250 million yuan.

During the period of "618", Anta completed a total of 1.43 billion yuan

The data of Alibaba platform also shows that the online sales of sports shoes from April to June 2020 will increase by 26.35%, 25.86% and 41.21% year-on-year, while the online sales of sportswear from April to June will increase by 30.04%, 38.81% and 55.54% respectively. In the second quarter, both the sales of sports shoes and sportswear increased significantly.

For international sports brand giants Nike and Adidas, the offline channel is still difficult to return to normal under the continuous overseas epidemic situation, and the online channel has become increasingly important.

According to last month, Nike's net sales of sports shoes surged by 38% compared with the same period of last month.

Adidas also recently announced a positive growth in overall revenue growth in Greater China in May. It is expected that sales in Greater China in the second quarter will be flat with the same period last year. Next, the adidas sub brand Reebok will shift its strategic focus to the e-commerce field, cooperate with more digital partners, and deepen and expand in this field.

Sports brands will invest in digital transformation

The growth of e-commerce data is crucial for Nike. Nike has 384 stores in the United States, including direct sales stores. The continuous spread of the epidemic has a greater impact on its offline. On July, the company announced a series of changes in the number of consumer oriented direct sales to customers, and will accelerate the pace of sales to new customers To 50%.

At the same time, such a digital transformation will have a huge impact on physical stores, including potential layoffs, and the cost of employee turnover may be between $200 million and $250 million.

In addition to Nike, 361 ° has also established a partnership with Jinfa to invest in Duodao (Quanzhou) e-commerce Co., Ltd., an indirect subsidiary of 361 degree (China), to continue to develop e-commerce business.

Strengthening digital sales channels is only one aspect, and the marketing of sports brands has begun to turn to "digital". Biyinlefen announced recently that it plans to acquire 100% equity of Shanghai Weixiang Network Technology Co., Ltd. Shanghai Weixiang is a professional marketing organization of short video. Relying on the data accumulation of we media and short video promotion, as well as the service advantages in content production, dissemination and drainage of quick hand and shaking tone platform, combined with the professional marketing strategy of MCN service team, we provide high-quality video content production, distribution and promotion for customers on short-term frequency we media, social we media and other carriers Service.

In addition, almost all sports brands have started the marketing mode of "bringing goods with all the people". Through community interaction, live delivery, short video and Buyer show, this way not only greatly alleviates the inventory pressure caused by the epidemic situation, but also greatly reduces the daily operation cost of sports brands.

For sports brands, digital transformation has been a major development trend in recent years, and the emergence of the epidemic only accelerated this change. Not only sports brands, but almost all consumer categories realize that the Internet is not only a more convenient consumption channel, but also a window for brands to get closer to consumers and quickly perceive their preferences. In the long run, the digital transformation of sports brands will not only be limited to e-commerce, but also the daily management and operation of sports brands will be more digital.